What changes will the development of cryptocurrency bring to the global economy?

The development of cryptocurrency is expected to bring about a number of major changes to the global economy. One of the most important of these is the increase in financial inclusion for citizens in countries with limited access to the traditional banking system. This will give individuals and businesses access to international markets and even the ability to move funds internationally without relying on costly and time-consuming third-party services such as banks, money transfer operators or remittance companies.

Cryptocurrency could also provide more transparent, secure, and efficient solutions to government taxation systems. Cryptocurrencies, such as Bitcoin and Ethereum, are completely trackable and can be used to build systems that allow governments to track and collect taxes more accurately.

In addition, the development of cryptocurrency could bring changes to the way businesses handle payments and contracts. Blockchain technology, which is the underlying technology of cryptocurrencies, allows two parties to engage in a contract without the need of a third-party intermediary. This could dramatically reduce transaction costs and provide businesses with more efficient payment processes.

Finally, cryptocurrency has the potential to disrupt the global banking and financial markets. Cryptocurrencies could render current banking infrastructure, such as clearinghouses, superfluous by providing a cheap, secure, and efficient alternative to existing payment and currency exchange services. In this way, crypto could introduce a new form of digital asset trading and asset management that could threaten existing banking models.